Understanding DRC’s New Mining Law Power Play: Will the Congolese People Benefit?
Apr 19, 2018
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Daniel Mulé
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Last month, the Democratic Republic of Congo (DRC) enacted a law to revise the country’s 2002 Mining Code. While the law improves environmental and social provisions, revisions to the fiscal regime – long considered relatively favorable to investors – were the focus. But mining companies and the government still seem to be in a deadlock over the changes to taxes and royalties, even after the law passed. Will these new terms help the DRC to capture a bigger share of the pie, which, if responsibly invested in key infrastructure and services, could potentially benefit the Congolese people? Or will the new terms end up, as some mining companies claim, stifling investment and reducing the pie for all?
Civil society can and should engage on these questions, considering both how revenues from mining can be maximized, and also how these revenues can be spent in a way that benefits the population and ensures public accountability.